Does bonus affect unemployment compensation?

Does it matter when the bonus was paid, that is, before or after the layoff? Don't bonuses count as salary, which could actually boost your unemployment compensation, which is based on your salary, if you received the bonus before you were laid off? (Assuming the nonbonus salary didn't hit the maximum allowed in the unemployment-compensation formula.)

Thanks for your follow up questions. A good site to check out is www.mass.gov. It has the most up-to-date and accurate information on unemployment compensation for Massachusetts. Unemployment benefits are tied to the weekly wages while a worker was employed. The calculation of benefits is 50% of a worker's weekly wage (looking back at the earnings when the worker was employed). The current max benefit is $628/week. If the worker receives compensation after their termination date, that compensation should be reported. Remember the former employer will be reviewing the claim and the wages reported. I hope this helps .

When I went through this before, I reported the bonus payment to the DUA the week I received it. For that week I earned too much to receive unemployment benefits. The following week I did not receive any income or bonus, and was back to being able to recieve my benefits.

If I was laid off and then received a Christmas or any type of bonus can I choose not to accept the bonus and mail it back to the company so that it wouldn't interfere with my unemployment benefits?

Hi -- in response to Carol's question. Yes, if you refuse a bonus, you would not have received it so it would not impact your unemployment compensation. However, you need to make certain that this bonus was not reported to the Department of Revenue OR reported by your employer to DUA.

Thanks, Pattie Hunt Sinacole

I was laid off and I am collecting unemployment insurance. I would like to try to get a job selling insurance. I know it takes time to establish a following and I do not anticipate making money for a few months. Would I lose my unemployment insurance as I am working but I would not be making any money for a few months?

Pattie,
I checked on the Mass UI site about vacation pay. The following would disqualify you from receiving UI help; payment in lieu of notice, termination pay , severance pay, and dismissal pay. I'm in the same boat as others, I'll be receiving a bonus tied to 2008 pay when I leave the company. This is not severance pay, it's basically a deferred bonus from 2008. Does Mass. look at like it's dismissal pay? Additionally, if i sign a release of claims it looks like it would not disqualify me from receiving benefits

Hi -- If you visit www.mass.gov and check out the DUA's Frequently Asked Questions (FAQs), this is a good source of information. An employer is required to provide the DUA all of the former employee's wages and when they were earned so Mike it depends upon when that bonus was paid. DUA will review your situation but often the signing of a release of claims agreement does not disqualify you from receiving UC benefits. Kenny -- your situation is a bit unusual too. DUA does require claimants to actively pursue employment opportunities (which you are doing!). However, since you are not earning any wages, they would likely permit you to continue to collect benefits. If that changes, you need to inform DUA immediately. Good luck to you both.

i also (ironically) got a bonus in early 2009 after being laid off in november. i was told by the unemployment people (on the phone) you DO NOT have to claim your bonus, so i didn't.

I also have a question. If I am on section 30, am i eligible for the extensions for the maximium of 59 weeks? I know I am eligible for the 18 additional weeks through the section 30 extension program, but i was wondering if i would be entitled to the full 59 instead.

I would like to know that I collect social security will I be able to colect unemploymen if I get layed off?

Pattie, are you sure that a bonus received after termination must be reported to dua? I was told over the phone that the employer would report it...

I have a friend who applied for the Federal extension after exhausting his year of unemployment. When the state went to review what he was eligible for they looked at yearnings over the last one year. It included his severance vacation pay and also some money from working part time. Total was $13,000. The state then used that as the base of earning for calculating his unemployment. He went from getting $600+ per week on unemployment to less than $200. How can the state do that? It appears that once you hit a year, they treat it as a new case. The vacation pay was given prior to the layoff and he worked part time in 09 (no week did his earning exceed 1/3 of his totally unemployment). This seems really wrong to me.Will